NEW SYSTEM OF STAFF INCENTIVE AND SOCIAL BENEFITS INTRODUCED AT AREXIMBANK-GAZPROMBANK GROUP

ArmInfo
2010-05-17 12:49:00

ArmInfo. A new system of payment for labor and staff incentive was
introduced at Areximbank-GBP Group to upgrade efficiency and retain
competitiveness of the system of labor payment and staff incentive,
the bank’s press-service told ArmInfo.

The evaluation system criteria are professional skills and
qualification of employees, the volume and importance of their
responsibilities, individual contribution to activity of branches
and the bank in general. The system aims to motivate the staff to
achieve current and long-term tasks of the bank’s development. The
new system of payment for labor applies to the regular staff and
is based on grading of jobs. The new system of salary consists of
official salary and monthly premiums, which is determined by the basic
ratio of monthly premiums approved by the Bank Council. In addition,
to encourage employees for specific month or quarter, a new type of
premiums has been introduced i.e. target premium. There are additional
incentive payments such as one-time premiums, market premiums, annual
premiums and compensations. To increase the real salary and in case
of consumer price and services growth, the new system of payment for
labor suggests salary indexation for the employees of the bank.

The bank also introduces a system of social provision of the staff
implying social guarantees and benefits. The key goals of the system
are to upgrade social protection of the staff, assignment of key
specialists, and increase confidence of the employee in the future.

The system of social provision of the bank staff suggests also the
following benefits and payments: additional paid leave, financial
aid in case of marriage and birth (adoption) of a child, to large
families (3 and more children), employees having disabled child,
in case of death of a family member, retirement, birthday anniversary.

In addition, some conditions of social payments are unique for the
banking system of Armenia. Thus, the employees on child-care leave are
provided with monthly benefits until the child becomes 3-year-old. The
higher is the position grade and income of an employee, the lower
are financial payments and benefits. The bank has also developed
a preferential system of lending for its staff. The bank staff
also has the right to use the corporate tariffs of the VTB Bank’s
partner-companies. Areximbank-GPB Group CJSC was founded in 1998. On
May 2 2010 the regulatory capital of the bank totaled 16bn drams,
total assets – 47.8bn drams. The number of branches totaled 15 and
the staff – 360 people.

Ranking of Armenian Commercial Banks prepared by Agency of Rating
Marketing Information (ArmInfo) ranked Areximbank-GPB Group 12th in
terms of the staff as of Apr 1 2010 (15.8% up per year) and the 10th
in terms of salary per employee (18.2% up per year).